Credit challenged new car buyers should know that according to TrueCar the best month to buy one is August
New Cars and Problem Credit Buyers
Here at Auto Credit Express we realize that the majority of car buyers with bad credit will end up financing a recent, low-mileage, used car. Many do this because these vehicles are generally more economical, while others pick this option because they didn’t qualify for a new car loan.
But in more than a few cases, borrowers will be offered the option of financing an affordable new car instead of financing a used car with bad credit. However just because you can borrow on a new car doesn’t mean it will fit into your budget. So when is the best time to try? Well according to TrueCar and its latest findings, the best month to buy a new car is August.
What Month is Best to Buy a New Car?
According to TrueCar, “Consumers looking to save on a new car or truck should do their shopping in August… New car and truck prices during the past five years in August have averaged $29,296 – $169 lower than any other month.”
The report goes on to note that:
Conventional wisdom used to be that December was prime time for new car and truck buyers. However, TrueCar data reveals that prices in December average $31,146 – the most expensive month for new cars and $1,850 higher than August… the average new vehicle transaction price in August is $169 less than any other month. The next lowest average is July. The average August savings are $716 less than the median price for the rest of the year.
“This is a great example of the power of data, which shows dealers are clearing out older inventory in August,” says TrueCar founder and CEO Scott Painter.
Remember the Warranty Coverage
A big advantage of financing a new vehicle is that it’s covered by fairly extensive new car warranty. While this is a big advantage over purchasing a used car, buyers on a tight budget should also consider the length of the warranty.
One suggestion: if the vehicle won’t be covered by the new car warranty for the entire loan term, these buyers might want to consider purchasing an extended warranty (service contract) at the time of sale. For the most part, a typical extended warranty is usually very affordable since, at a minimum, the first 3 years or 36,000 miles are covered by the manufacturer.
The Bottom Line
Contrary to popular belief – or at least according to the information gathered by TrueCar – the best overall month to buy a new car is the month of August. Credit-challenged buyers might also want to examine their loan term versus the length of the new car warranty and stop to consider whether or not purchasing additional warranty coverage might be to their benefit.
One more tip: at Auto Credit Express matches applicants that have experienced credit difficulties with dealers that can give them their best chances at a car loan approval.
So if you’re ready to establish your credit, you can begin now by filling out our online auto loan application.
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